Automobile

Underwriting profits remained challenged in this product, as claims costs rose due to inflation combined with an increase in claims frequency. This led to a more conservative environment, with modest price increases and a contraction of appetite and capacity for poor performing risks and higher risk types such as ride sharing and new mobility (VTC). Profitability was prioritized over premium growth. Looking ahead, with some exceptions related to non-preferred risk types and those with high claims frequency, current market conditions are generally expected to continue. Auto will remain one of the products that insurers leverage to retain global clients.

Casualty/Liability

Market conditions remained stable, with notable exceptions for specific risk types. Due to inflation, reinsurance treaties, and changes in Spanish accident legislation, most risks - even those that performed well – experienced modest price increases. Poor performing risks experienced more significant increases. Capacity was abundant as a result of new market entrants (in Spain), most of which focused on excess layers rather than primary coverages. Underwriters were cautious and requested detailed underwriting information, including in most cases at least five years of loss information. Limits and deductibles were generally flat, with occasional exceptions related to specific risk types or risk performance. Exclusions for the events in Eastern Europe and PFAs were standard in the market. Looking ahead, current market conditions are expected to continue.

Cyber

The challenging market conditions seen in recent years continued to show signs of moderating. Although insurers continued to demand extensive underwriting information, price increases generally decelerated, and coverage restrictions relaxed, particularly for companies demonstrating risk maturity. Appetite strengthened (but remained limited for life science, healthcare and critical infrastructure risks) and capacity increased slightly for targeted risk types, although insurers preferred to write at high attachment points. Underwriting related to territorial scope, war, and material damages remained rigid but became more flexible on coverages and the application of exclusions; in some cases, restrictions were softened or removed. Where risk maturity was deemed insufficient, limit reductions were imposed. Mandatory increases were imposed on both general deductibles and time deductibles for Business Interruption. Looking ahead, current market conditions are expected to continue.

Directors and Officers

The market moderation that began in 2022 continued. Market conditions varied between primary and excess, with the former seeing a moderate environment – including flat pricing and sufficient capacity – while the latter experienced a favorable environment, with price decreases, abundant capacity, and healthy, growth-focused competition amongst insurers, especially for in-appetite, well performing risks. Appetite expanded – in both primary and excess layers - and there were more insurers, and capacity, in this space. That said, many insurers continued to prefer coinsurance for large limit programs. Underwriting became more flexible and enhanced coverage terms and Long Term Agreements were achievable in some cases; however, stringency continued as respects territorial restrictions for war and cyber exclusions. Insurers were cautious when underwriting Financial Institutions and risks with complex loss histories. Limit and sub-limit increases were generally achievable. Looking ahead, the moderation trend is expected to generally continue; however, insurers will continue to closely monitor the events in Eastern Europe, the unfolding bank crisis, and the state of the economy, and will adjust course as needed.